A novel nonlinear 1-D gradient model has been previously proposed by the authors, combining (i) the higher-order gradient terms that capture the influence of material micro-structure and (ii) a nonlinear softening material behavior through the use of a hyperbolic constitutive model. While the previous study focused on the existence and properties of solitary-type waves, the current study focuses on the characteristics of the transient wave propagation in the proposed model. Findings show that as nonlinearity increases, the bulk of the wave slows down, and its shape becomes more distorted in comparison to the response of the linear system. The energy analysis reveals that, unlike the linear system, the nonlinear one continuously exchanges energy, in which the kinetic energy decreases over time while the potential one increases. Furthermore, the spectral (wavenumber) energy density of the nonlinear-elastic system presents peaks at large wavenumbers. However, these are eliminated when a small amount of linear viscous damping is added indicating that they are not physically relevant. A notable feature that persists despite the presence of damping is the formation of small-amplitude waves traveling in the opposite direction to the main wave. Generalized continua, like gradient elasticity models, miss the small energy scatter by the micro-structure. This study shows that adding material nonlinearity to a homogeneous generalized continuum can capture reverse energy propagation, though at much smaller magnitudes than the main wave. These findings shed light on the characteristics of the transient wave propagation predicted by the proposed nonlinear 1-D gradient model and its applicability in, for example, predicting the seismic site response.